01/24/2012 (12:44 am)

Japan central bank downgrades growth forecast

Filed under: Finance, online |

Japan’s central bank said Tuesday it expects the economy to shrink slightly during the fiscal year ending in March instead of expanding as it forecast earlier because of the overseas slowdown.

The Bank of Japan kept its key interest rate the same at close to zero percent but downgraded its growth forecast for the year ending March 2012 to a 0.4 percent contraction from the 0.3 percent expansion it gave in October.

The bank stuck to its projection for a moderate recovery starting the first half of the next fiscal year.

But it lowered its projection for fiscal 2012 to 2.0 percent growth from 2.2 percent growth No teletrack payday loans. It was more upbeat about fiscal 2013, raising that to a 1.6 percent expansion from 1.5 percent.

The bank said the massive debt problems in Europe as well as uncertainty about the U.S. economy are risks for Japan’s outlook.

The strong yen, which erodes the value of exports from the world’s third largest economy, also dragged down growth, keeping economic activity “more or less flat,” it said.

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01/14/2012 (12:44 pm)

Debtors prison: It’s back and it’s here

Filed under: Finance, online |

Robin Ebersohl knew she had a loud muffler. She couldn’t afford to get it fixed. When she saw a police car, she thought she’d chance it and drive by.

It was a mistake bigger than she could have imagined.

She thought she might get a ticket. Instead, she got three days in jail and her father lost $500 in bail money.

Ebersohl, of Livingston in Madison County, wasn’t accused of a crime. She was arrested on a court order issued at the behest of a creditor trying to collect less than $1,000 she owned in medical bills.

Ebersohl, 51, was trapped in the 21st century version of debtor’s prison.

“It was awful. You get deloused. They do this in front of the guard. It was very embarrassing. It was very degrading,” she said. “I’d never been arrested before, never been in any kind of trouble.”

The term “debtors prison” summons up images of Dickensian England and Colonial America. As a formal matter, most states did away with debtors prisons in the early 1800s, along with the whipping post.

But lots of people still go to jail over unpaid debts in America - including Missouri and Illinois. Here’s how it happens:

A creditor goes to court and gets a judgment for an unpaid debt. The debtor is then summoned to court to be questioned by the creditor, who wants to know about assets that could be seized. It’s called a “pay or appear” hearing in Illinois.

If the debtor doesn’t show up, the creditor asks the judge for an arrest order. In Illinois, that’s called a “body attachment.”

Creditors and their lawyers say it’s necessary tool to make sure that debtors obey the courts.

“If we can’t enforce our contracts, and use the law to do that, what will we become?” asked William Asa, a creditors attorney in Metro East.

Consumer advocates say its used unfairly to squeeze money out of jailed defendants and coerce others with the threat of imprisonment.

Police generally don’t go hunting for debtors. But if they’re stopped for a traffic violation or some other reason, the warrant shows up on computer records and off to jail the debtor goes.

Creditors like body attachments because they make money on them, as Ebersohl can testify. She sat in jail until her father’s pension check arrived, and he paid her $500 bail.

Then the court released the bail to her creditor, the Credit Bureau of Macoupin County. Her father was out the money.

“It’s considered the property of the defendant,” says Brent Cain, who represented the Credit Bureau. After all, the Credit Bureau had a judgement against Ebersohl and thus could take her property.

That’s common practice, says Beverly Yang, attorney at Land of Lincoln Legal Assistance, which provides free legal representation for the poor.

“This process is THE method of collection,” she said.

Arrests of debtors are common today in Southern Illinois, according to Yang. She said Madison County courts issued 65 such arrest orders from April to December of last year. Ebersohl’s arrest was in October 2007 on an order issued in Macoupin County.

Missouri courts are issuing arrest orders for debtors, too, said Rob Swearingen, attorney for Legal Services of Eastern Missouri. So-called “capias” warrents are issued “over and over again” in St business cards. Louis city, he said, although he said he is just beginning to study the issue and doesn’t know how common it is in the state.

The idea of jailing debtors is drawing criticism in Illinois. The state Department of Financial and Professional Regulation is holding hearings on the practice around the state, including one last Monday in Alton.

The department, which regulates lenders, revoked the license of a Easy Money Express, a Carbondale loan company in 2010 for obtaining arrest orders for debtors. The lender got its license back after agreeing to stop the practice.

Yang complains that defendants often don’t know they’ve been summoned to court until they are thrown in jail. Notices of “appear or pay” hearing come by regular mail, she said If the debtor has moved, or didn’t see the letter, they don’t know to appear.

That’s what Ebersohl says happened to her.

Ebersohl was truck driver in 2002, when she came down with cancer. She conquered that, but the ordeal aggravated her diabetes, and she could no longer drive a truck.

She lost her health insurance, along with her job, but her medical bills kept piling up. Eventually, she qualified for disability benefits.

Her creditors sued, got a judgment against her, and began summoning her to “pay or appear” hearings every few months. That’s also a common practice, says Yang, who considers it harassment.

Ebersohl says she went to court every time she got a notice. But says she was never knew about the hearing that caused her arrest. “If I’d got the notice, I would have went,” she said.

Sharon, who identified herself as manager at the Credit Bureau of Macoupin County, declined comment on Ebersohl’s particular case. But she said the agency takes a slow, phased approach to collections.

Before filing suit, the collection agency spends three months trying through letters and phone calls to persuade a debtor to pay, always politely, she said.

“Sometimes people get pretty violent. I’ve been threatened a few times, even today,” said Sharon, who declined to give her last name. “We try to be really nice.”

The agency files suit only if the debtor is making no effort to pay or stay in contact.

“A warrant is issued only when they are in contempt of court - when they refuse to show up or follow the judge’s order,” she said.

Rather than by mail, all their legal papers are delivered by off-duty policemen, she said.

Swearingen says his debtor clients in Missouri often never learn they’ve been sued until after they’re facing a wage garnishment. Missouri law doesn’t allow legal papers to be served by mail in most cases. But it does allow service to someone at the same address. Especially if the defendant has moved, he may never see the papers.

Yang is pressing for changes in Illinois forbidding serving papers by mail, or by summoning people to “pay or appear” hearings over and over again. In some counties, debtors must appear every month, she says. One hearing should be enough.

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01/10/2012 (8:44 am)

Asmussen Bolsters Angela Merkel

Filed under: Mortgage, online |

Less than 12 hours after German Chancellor Angela Merkel emerged from an all-night crisis summit on Oct. 27, Joerg Asmussen appeared in front of lawmakers in Berlin to sell the deal he helped broker in Brussels.

01/09/2012 (9:40 am)

ECB Financing to Portuguese Lenders Rose to 46 Billion Euros in December - Bloomberg

Filed under: Loans, online |

The European Central Bank

12/25/2011 (3:40 am)

Swiss Panel Still Studying Measures to Weaken Franc, Widmer-Schlumpf Says - Bloomberg

Filed under: online, term |

+%3Cp%3EA+Swiss+panel+from+the+government+and+the+central+bank+is+examining+options+such+as+capital+controls+and+negative+interest+rates+to+curb+the+franc%92s+strength%2C+Finance+Minister+Eveline+Widmer-Schlumpf+said.+%3C%2Fp%3E+%3Cp%3E%93If+the+situation+deteriorated+further+in+the+foreign-+exchange+markets%2C+we+would+have+the+opportunity+to+take+certain+accompanying+measures%2C%94+Widmer-Schlumpf+said+at+a+hearing+in+parliament%92s+lower+house+in+Bern+yesterday.+Among+the+steps+being+considered+are+negative+interest+rates%2C+a+levy+on+transactions+and+restrictions+on+the+movement+of+Swiss+and+foreign+currencies.+The+panel+is+also+looking+at+restrictions%2C+including+a+possible+ban%2C+on+foreigners+buying+Swiss+real+estate.+%3C%2Fp%3E+%3Cp%3EThe+Swiss+franc+has+appreciated+to+record+levels+against+the+euro+over+the+last+year%2C+raising+the+risk+of+deflation+and+threatening+exports.+That+prompted+the+country%92s+central+bank+to+impose+a+limit+of+1.20+francs+per+euro+in+September+and+the+government+to+lower+its+forecast+for+next+year%92s+economic+growth.+Basel%2C+Switzerland-based+freight+forwarder+Panalpina+Welttransport+Holding+AG+said+last+month+the+franc%92s+strength+had+a+%93significant%94+effect+on+its+results.+%3C%2Fp%3E+%91Don%92t+Want+To%92++%3Cp%3E%93I+would+like+to+emphasize+that+we+don%92t+want+to+implement+these+measures%2C%94+Widmer-Schlumpf+said+%3Ca+href%3D%22http%3A%2F%2Fpaydayloans-on.com%22%3Ecash+till+payday%3C%2Fa%3E%3C%21–+.+–%3E.+They+%93are+being+examined+so+that%2C+in+case+of+need%2C+everything+has+been+considered+and+we+can+make+suggestions.%94+%3C%2Fp%3E+%3Cp%3EThe+finance+minister+has+made+similar+statements+in+the+past.+On+Dec.+7%2C+she+said+at+a+hearing+in+the+parliament%92s+upper+house+that+capital+controls+and+negative+interest+rates+%93are+issues+which+are+being+examined.%94+%3C%2Fp%3E+%3Cp%3EThe+task+force+consists+of+officials+from+the+Swiss+finance+ministry%2C+the+economy+ministry+and+the+Swiss+National+Bank%2C+the+finance+minister+said.+%3C%2Fp%3E+%3Cp%3EThe+Swiss+franc+remains+%93massively+overvalued%94+and+should+continue+to+weaken%2C+Economy+Minister+Johann+Schneider-Ammann+said+at+yesterday%92s+hearing.+%3C%2Fp%3E+%3Cp%3EHe+also+called+the+Swiss+central+bank%92s+franc+ceiling+of+1.20+versus+the+euro+a+%93necessary%94+measure.+%3C%2Fp%3E+%3Cp%3E%93The+purchasing+power+parity+is+at+1.35%2C+1.40%2C%94+Schneider-Ammann+added.+It+would+be+desirable+for+the+exchange+rate+to+%93move+into+this+direction+sooner+rather+than+later.%94+%3C%2Fp%3E++%3Cp%3E%3Ca+href%3D%27http%3A%2F%2Fwww.bloomberg.com%2Fnews%2F2011-12-21%2Fswiss-panel-studying-measures-to-curb-franc-s-gains-widmer-schlumpf-says.html%27+rel%3D%27nofollow%27%3ESource%3C%2Fa%3E%3C%2Fp%3E+

12/11/2011 (9:28 pm)

Asia stocks rise amid approval for Europe pact

Filed under: News, online |

Asian stock markets rose Monday as investors cheered a new European fiscal pact aimed at fixing the region’s debt crisis and preventing a collapse of the euro currency.

Japan’s Nikkei 225 index jumped 1.5 percent to 8,665.76. South Korea’s Kospi added 1.2 percent to 1,896.35 and Hong Kong’s Hang Seng gained 1.6 percent to 18,874.22.

Under the deal reached Friday, all 17 countries that use the euro agreed to allow a central European authority to oversee their future budgets. They also agreed to automatic penalties if they spend too much.

In addition to tighter controls on spending, Europe’s new “fiscal compact” calls for the launch of a permanent bailout fund for euro nations in 2012, a year ahead of schedule. The deal also will send 200 billion euros ($267 billion) to the International Monetary Fund, which controls another emergency fund for countries in crisis.

But the deal won’t help cut debt today, which in Italy, Greece and Spain has driven government borrowing costs close to levels considered unsustainable installment payday loans. That loose end brought into focus the future monetary policy of the European Central Bank, and whether it would be willing to buy enough national bonds from troubled countries to keep interest rates down.

Analysts at Credit Agricole CIB said “the lack of ECB action in terms of stepping up to the plate as lender of the last resort” still weighed on investment sentiment.

There were also doubts about the willingness of each individual country to ratify the agreement.

Benchmark oil for January delivery was down 7 cents to $99.34 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.07 to finish at $99.41 per barrel on the Nymex on Friday.

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12/08/2011 (8:40 pm)

European stocks steady after ECB rate cut

Filed under: Mortgage, online |

European markets were little changed Thursday after the European Central Bank delivered another interest rate cut before a crucial summit of European Union leaders that could determine whether the euro currency survives or not.

The decision by the European Central Bank to reduce its main interest rate by a quarter of a percentage point to 1 percent was expected and investors will be looking to see if its new ECB President Mario Draghi hints at further cuts in the months ahead amid growing signs of a recession in the 17-country eurozone.

“Expectation is growing that the ECB may look to cut its main policy rate below the current record low of 1 percent in coming months if the economic situation continues to deteriorate,” said Chris Williamson, an analyst at Markit.

In Europe, the FTSE 100 index of leading British shares was up 0.3 percent at 5,562 while Germany’s DAX rose 0.2 percent to 6,043. The CAC-40 in France was 0.3 percent lower at 3,164. The euro was 0.2 percent higher at $1.3417.

Wall Street was poised for modest gains on the open _ Dow futures were up 0.1 percent at 12,231 while the broader Standard & Poor’s 500 futures rose 0.1 percent to 1,265.

Traders were looking to Draghi’s press conference later Thursday to see what he says about the bank’s limited bond-buying program.

Draghi has said the central bank is ready to do more to support bond markets provided that European politicians agree to closer budget controls among the 17 countries that use the euro. Germany and France have proposed a plan on closer fiscal unity that will dominate debate at Friday’s EU summit.

Investors hope if European governments can agree to tighter spending oversight, the ECB will step up its support for the bond markets. It currently buys bonds in the markets, but only reluctantly, and in small quantities.

“The ECB has made it clear that the sequencing of events is all-important, a hint that if the EU takes a significant step towards more fiscal discipline then it will continue to support the market in size and maybe in words as well,” said Gary Jenkins, an analyst at Evolution Securities.

“Let’s hope what is decided is enough to keep the ECB satisfied, so that it keeps up its support for markets,” he added same day payday loans.

Hopes that Europe was finally readying a decisive plan to deal with its crippling debt crisis had helped stocks rise over the past couple of weeks, as well as pushing the borrowing rates of countries like Italy down to more manageable levels.

The ten-year yield on Italy’s bonds is currently trading around the 6 percent mark, down on the 7 percent level that it traded at as recently as last week. Borrowing rates of over 7 percent are considered unsustainable and eventually caused Greece, Ireland and Portugal to seek financial bailouts.

The French-German proposal to enshrine tougher budget rules in European treaties is being met with resistance by the European Council, an institution that defines the priorities of the entire 27-nation EU. Its president, Herman Van Rompuy, favors a simpler route _ amending existing rules that apply to the 17 euro countries to avoid the trickier step of requiring every country to approve the new treaty.

The potential for disagreement at the summit weighed on Asian stocks earlier as it had done in Europe and the U.S. on Wednesday.

Japan’s Nikkei 225 fell 0.7 percent to 8,664.58, dragged down by weaker-than-expected machinery orders. South Korea’s Kospi lost 0.4 percent to 1,912.39 and Hong Kong’s Hang Seng shed 0.7 percent to 19,107.81.

But mainland Chinese shares rose, with the benchmark Shanghai Composite Index gaining 0.1 percent to 2,329.82 after losing more than 1 percent earlier in the day to approach an intraday low for the year. The Shenzhen Composite Index gained 0.1 percent to 970.95.

Oil prices rose modestly in line with the modest advance in Europe _ benchmark oil for January delivery was up 38 cents to $100.87 a barrel in electronic trading on the New York Mercantile Exchange

____

Pamela Sampson in Bangkok contributed to this report.

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11/16/2011 (1:04 am)

Supercommittee: Boehner calls tax plan fair offer

Filed under: Mortgage, online |

House Speaker John Boehner publicly blessed a Republican deficit-reduction plan Tuesday that would raise $300 billion in additional tax revenue while overhauling the IRS code, bucking opposition by some GOP presidential hopefuls and colleagues wary of violating a longstanding point of party orthodoxy.

Boehner, the top Republican in Congress, spoke as time grew perilously short for agreement by the deficit-fighting “supercommittee.” The panel has until a week from Wednesday to vote on any compromise, but several officials said that in reality, perhaps as little as 48 or 72 hours are available to the six Republicans and six Democrats.

While Boehner’s voice is important, his endorsement does not mean all Republicans will follow him or that a deal is in sight. Republicans have been unified for two decades in opposition to higher taxes, while Democrats on the supercommittee insist on additional revenue before they will agree to cuts in benefit programs like Medicare as part of a compromise.

The speaker said that the plan, outlined a week ago to Democrats on the committee, was “a fair offer.” Adding tax reform would generate economic growth, he said, speaking as the supercommittee groped uncertainly for a compromise to reduce red ink by $1.2 trillion or more over a decade.

Any deal must be certified by the nonpartisan Congressional Budget Office as meeting the $1.2 trillion target, circulated to lawmakers and then posted publicly before the committee takes formal action. Failure to act would trigger $1.2 trillion in automatic deficit cuts in 2013 that both sides say they want to avoid.

The full committee hasn’t met in several days, but various subgroups have been in near constant contact.

More than deficit reduction is at stake, one year into an era of divided government.

Democrats are hoping to add elements of President Barack Obama’s jobs legislation to any deficit-cutting deal, including extensions of a Social Security payroll tax cut and unemployment benefits that are due to expire at the end of the year. A comprehensive rewrite of farm programs may hang in the balance, too, and lawmakers also must pass legislation to assure sufficient funds to reimburse doctors who treat Medicare patients.

As the pace of private talks intensifies, the two sides vie publicly for the high ground in public opinion.

“I am still hopeful that a few Republicans will put their country first and come to us with a credible offer with real revenue,” Sen. Patty Murray, D-Wash., co-chair of the supercommittee, told reporters as she emerged from a late-afternoon meeting.

Earlier, the Republican Senate leader, Mitch McConnell of Kentucky, said GOP members on the committee outlined a proposal several days ago and have yet to receive a response from Democrats. “It’s been a long week, waiting for a counter-proposal,” he said.

The twin issues of taxes and benefit programs have long been stumbling blocks in budget negotiations.

In negotiations last summer, according to numerous officials, President Barack Obama and Boehner were considering sizeable cuts to benefit programs as well as an overhaul of the tax code that would have raised as much as $800 billion in additional revenue _ money that Republicans said at the time would have come from economic growth pay day loan lenders. The talks ultimately failed.

In his comments Tuesday, Boehner cited the importance of tax overhaul in the proposal that Sen. Pat Toomey, R-Pa., made to supercommittee Democrats last week.

“It’s important for us to, in my opinion, reform the tax code. And we’ve got the highest business tax rate in the world. We’ve got a personal tax system that’s so complicated it costs Americans about $500 billion a year to comply with the current tax code,” he said.

Boehner asserted that the changes would “make America more competitive and produce more economic growth. And so I do believe that reforming the code is a step in the right direction. The details of how we get there, frankly, I think are yet to be worked out.”

Republican officials have said the offer made by Toomey envisions an overhaul that would drop the top tax rate on personal income to 28 percent from the current 35 and shave or eliminate some itemized deductions that are commonly used. The top corporate rate would also fall.

The result would be an estimated $250 billion in additional revenue over a decade, they estimate.

Despite Boehner’s comments _ and Toomey’s credentials as an opponent of tax increases _ GOP presidential contenders Newt Gingrich and Rick Perry said they were prepared to oppose a plan along the lines of the one under consideration. Another candidate, Mitt Romney, brushed aside a question on the subject.

Supercommittee Republicans also support a proposal that would replace the current measurement of inflation used to adjust income tax brackets and cost-of-living increases with another, less generous one. They estimate it would result in an estimated $50 billion in higher tax revenue and reduce spending by roughly three times that amount.

Obama backed a similar plan last summer in his talks with Boehner. More recently, Democrats on the supercommittee included it in an offer, although liberals made clear their unhappiness and it was subsequently jettisoned.

Both Boehner and Rep. Jeb Hensarling of Texas, the GOP co-chair of the supercommittee, explained the Republican proposal to members of the rank-and-file at a closed door meeting.

According to numerous officials who attended, Hensarling displayed charts that sought to place the offer in the context of other scenarios that might occur if there is no agreement. Among them are increases in tax rates that would occur beginning on Jan. 1, 2013, if all of the cuts enacted when President George W. Bush was in office expire as currently scheduled.

“They haven’t thrown me out, so I guess I got a good reception,” Hensarling later said of his reception.

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11/01/2011 (1:16 pm)

Officials delay moves to evict St. Paul’s camp

Filed under: UK, online |

Local officials in London say they are suspending legal action to evict anti-capitalist protesters camped outside St. Paul’s Cathedral, after church officials gave the tent city a reprieve

The City of London Corporation says legal action due to start Tuesday is being “paused overnight” so that officials can meet for more talks.

Cathedral authorities said earlier that they had halted legal action against the tent city and wanted to address the issues the protesters had raised.

The two-week standoff over the scores of tents set up outside the iconic cathedral has been an embarrassment for the church, but an attention-getting bonanza for protesters, who are inspired by New York’s Occupy Wall Street movement.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

LONDON (AP) _ London officials say they are suspending legal action to evict anti-capitalist protesters camped outside St low interest rate personal loans. Paul’s Cathedral, after church officials gave the tent city a reprieve

The City of London Corporation says legal action due to start Tuesday is being “paused overnight” so that officials can meet for more talks.

Cathedral authorities said earlier that they had halted legal action against the tent city and wanted to address the issues the protesters had raised.

The two-week standoff over the scores of tents set up outside the iconic cathedral has been an embarrassment for the church, but an attention-getting bonanza for protesters, who are inspired by New York’s Occupy Wall Street movement.

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10/24/2011 (10:32 am)

Tropical Storm Rina could be hurricane by Tuesday

Filed under: money, online |

Forecasters say Tropical Storm Rina has formed in the Caribbean Sea off the coasts of Honduras and Nicaragua and could become a hurricane by Tuesday.

The U.S. National Hurricane Center reports Monday that the storm’s center is located about 190 miles (305 kilometers) southwest of Grand Cayman.

It has maximum sustained winds of 45 mph (72 kph) and is moving northwest near 6 mph (9 kph).

Forecasters expect Rina to gain strength in the next two days and say it could become a hurricane by Tuesday night. The storm is forecast to bring at least an inch of rain along the northeast coast of Honduras and at least 2 inches of rain over the Cayman Islands.

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